Beyond the paycheck: Insights on employee reward and benefits
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Connect tomorrow’s reality with today’s aspirations The goals you set yourself to achieve define the impact you want and the impact you make. As individuals, it may be a life of purpose, a legacy left for family, or a retirement filled with ambition. As businesses, it may be to enable the very same for employees, which in turn results in a better, more resilient organisation. At Alexforbes, we know that doing this starts with a deep understanding of your needs and the best solutions and variables that can influence good outcomes. We draw on a diverse and rich base of knowledge and insight we have nurtured over decades. We connect it to holistic and independent advice so that your decisions of today have the impact you want tomorrow. www.alexforbes.com
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Content Navigating success through data-driven insights
4
Delivering impactful benefits in the workplace
5
CIPD Foreword
6
Setting the scene
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Key insights at a glance
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Leave and Flexible Working
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Employer Considerations - Leave and Flexible Working Wellbeing Resources and Development Employer Considerations - Wellbeing Resources and Development Financial Health Employer Considerations - Financial Health Pension Benefit Employer Considerations - Pensions Access to Traditional and Additional Employee Benefits
13 14 16 18 19 20 24 26
Employee Assistance Programmes (EAP)
28
Equity / Share Scheme
29
Death in Service
29
Health Insurance / Private Medical Insurance
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Employer Considerations - Access to Traditional + Additional Employee Benefits
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Spotlight on Guernsey
35
Final thoughts
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About the Authors
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Appendix 1 - Jersey data
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Demographics
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Leave
43
Flexible Working
43
Wellbeing Resources
45
Development
46
Financial Health
47
Access to Benefits
47
Pension
48
Additional Benefits
50
• EAP • Equity / Share scheme • Death in service • Health insurance
50 51 52 53
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Navigating success through data-driven insights
“It is a capital mistake to theorise before one has data.” — Sherlock Holmes
In the ever-changing landscape of modern business, there’s a simple truth: informed decisions drive success. Companies that rely on data consistently outshine their competition. We’re in the midst of a movement that is embracing a smarter way to gather and use data about our people. It’s about asking the right questions to truly understand what makes them tick.
By understanding the unique needs and desires of your workforce, you avoid the pitfalls of investing in perks that go unnoticed. Salary is no longer the key driver of retention and attraction - we need to focus on delivering benefits that are supportive of wellbeing to generate a greater return on investment from the employee experience.
The days of just sending out engagement surveys are behind us. Today, creating engaged employees goes beyond work satisfaction. It’s about their overall wellbeing and happiness, which in turn translates to good business. To get there, we need the right data to guide our people strategies.
Whilst reading this report, I hope you feel motivated to delve deeper into your own employees’ needs, and realise the value in data like this. As you read through these insights, picture using your own data to transform your workplace into a place where benefits are not just offerings, but bridges to healthier, happier lives.
At Anova, we exist to deliver data-driven insights with people at the core of everything we do. Understanding the heartbeat of your employees isn’t just a strategic advantage – it’s the key to unleashing a workforce that thrives. That’s why we’re excited to present this report, “Beyond the Paycheck: Insights on Employee Reward and Benefits”, to give a window into how people feel about their rewards and benefits and what they value the most. At the heart of our findings lies a resounding truth: one size does not fit all. Benefits are not just a checkbox exercise; they are a gateway to holistic employee wellbeing. Our research showcases that investing wisely in benefits can save organisations money in the long run.
Jenny Winspear Chief Operating Officer Anova
Beyond the Paycheck: Insights on Employee Reward and Benefits
Delivering impactful benefits in the workplace While the pursuit of wellbeing is nothing new, the last few years have seen it return to the forefront of the workplace. Ancient philosophers pointed out that although wellbeing is realised by small steps, it is truly no small thing. It is the sum of all our individual decisions. Wellbeing evolves to the changing world as we do. This change extends to wellbeing in the workplace which is no longer a compartmentalised part of our lives where we trade off a paycheck for our time. Improving the design of benefits and reward to support wellbeing in the workplace was the fundamental driving force behind this research. It is only by listening closely to the voices of our people that employers can identify what really matters to them, prioritising and delivering those benefits that make the right impact on wellbeing. Further to this, every organisation is unique and tailoring a holistic employee reward package and wellbeing offering is fundamental to retaining, growing, and attracting talent. This is more important than ever before as we strike a balance between driving much needed economic growth, with providing the overall quality of life we have become accustomed to enjoying in the Channel Islands.
“Wellbeing is attained little by little, and nevertheless is no little thing itself.” — Zeno of Citium
We have partnered with the team at Anova to drive deeper insights into what shapes employee benefits that matter. Benefits with the right impact. We hope this report will help you to evaluate your own workplace wellbeing ambitions and to enable better decisions around the benefits that support the wellbeing and culture of your own workplace. The team at Alexforbes Offshore will continue to focus on supporting not only your unique requirements as an employer, but designing and delivering future fit benefits that resonate with members and employers as reward and wellbeing continually evolves in the workplace.
For close on 50 years Alexforbes Offshore has focused on delivering sound advice to support decision-making for corporate clients, their employees, and the individual customers we advise. We appreciate the impact the right decisions will have on the future. It is through this consulting lens that we work to inform, educate, and empower a range of stakeholders on reward and benefits so that they can make informed decisions about their current and future financial wellbeing.
Timothy Townsend Head of Wealth Management and Corporate Consulting Alexforbes
A better measure
How we’re taught to measure success
Liking what you do
Salary Salary
Job title
Mental health Job title Physical health Free time
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Beyond the Paycheck: Insights on Employee Reward and Benefits
CIPD foreword I was very pleased that Anova and Alexforbes asked me to review their recent Channel Islands Report “Beyond the Paycheck” comparing CIPD insights from their Wellbeing1 and Good Work Index Report2. It is important that we recognise that workplace trends in the Channel Islands may vary from that of the UK, and we take into consideration the valuable insights and findings from this report to find a suitable balance. We understand that employee wellbeing, reward and benefits is a critical component of a healthy working environment and companies that promote wellbeing through accessible and transparent reward and benefits packages make it easier for employees to maintain a positive and productive working
environment. It is essential that wellbeing and access to benefits is embedded into the day-to-day people management practices of organisations. It has been identified that HR professionals and people managers are playing a central role in responding to people challenges and it should be recognised that employers are making progress in addressing the wellbeing of its employees through better reward mechanisms and benefit packages. There has been an increased focus on creating healthier workplaces post pandemic and addressing financial rewards and benefits that assist our employees in the current economic crisis, however there is always room for improvement.
In this report one of the most fundamental questions asked was
“is your job more than just a pay check?”
82%
of the respondents agreed or strongly agreed that their job is more than just about their salary.
My job is more to me than just a paycheck
Although financial rewards remain to be a key element of the employee picture, indicators tell us that there are increased expectations that employers provide intrinsic packages that demonstrate a proactive approach towards all aspects of wellbeing. If employers focus on what is important to their employees and take a holistic approach strategically in terms of reward and benefits, employers can create and deliver positive work experiences for their employees. Thank you Anova and Alexforbes for producing this report for the Channel Islands.
1 Health and wellbeing at work | CIPD 2 Good Work Index | Survey reports | CIPD
Susan Russell Chair of Jersey Branch CIPD
Beyond the Paycheck: Insights on Employee Reward and Benefits
Setting the scene Alexforbes and Anova, leading experts in pensions/ benefits and corporate wellbeing respectively, formed a partnership to conduct a comprehensive study focused on the Channel Islands. The primary aim of this research-backed survey was to pioneer insights and gain comprehensive data into the impact that employee benefits (such as flexible working, pension, wellbeing provisions) have on employee wellbeing. The hope was to allow Channel Island companies to assess the value of their employee reward initiatives, providing insight into the psychological impact that they have on employee wellbeing and a greater understanding of the importance of the holistic employee reward package.
In addition to this, the Channel Islands is sometimes overlooked for research on attitudes, beliefs and values (although PwC’s recent Channel Islands’ Workforce Hopes and Fears Survey 20233 is another great source), and the more data we have on the unique aspects of Channel Islands workers, the better organisation’s can adapt workplaces to support employees.
It is hoped that the insights gained from this study will be of significant benefit not only to individual companies, but also to the broader Island economy. By promoting better employee wellbeing through reward and benefits, companies can help to drive economic growth and improve overall quality of life in the Channel Islands.
amily-friendly benefits including different types F of leave
Flexible and remote work offering after the pandemic
Mental health and wellbeing support from employers areer development and learning opportunities / C employee recognition Financial wellbeing and employer support in this space
Why now? It is a crucial time to truly understand these insights due to a high-pressure job market, increasingly high cost of living, rising levels of stress and burnout, upcoming pension regulation in Guernsey, and to re-evaluate the significant impact post pandemic employment which has shifted employee’s priorities and values.
The number one priority for Gen Y and Z when assessing employers is a company that cares about their wellbeing – Gallup
62%
During the design of the survey, the researchers looked to the UK to deepen their understanding of trends within employee reward and benefits. Combined with their expertise and knowledge of the local market, a number of focus areas were identified to investigate, including:
Sixty-two percent of employees surveyed identified employee well-being as a key deciding factor when applying for a new job – Forbes
3 https://www.pwc.com/jg/en/publications/hopes-and-fears.html
iews of and understanding around pensions, given V regulations are different in the Channel Islands to the UK dditional benefits whose importance has also A increased since the pandemic, such as Employee Assistance Programs, Death In Service, and Health Insurance.
A number of local associations, networks, and organisations were consulted during the design of this survey. The researchers applied knowledge of legal frameworks, government activities, and industry knowledge to ensure the research would be relevant and timely for the organisations and individuals that wish to use it.
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Key insights at a glance
617
Thanks to all those who participated, and to all the organisations that took part in return for their own anonymised data back.This research had:
Respondents from 70 different organisations
There is scope to improve clarity on flexible working for organisations in Jersey to positively impact wellbeing.
• •
• •
Over a quarter (27%) of people disagreed that their organisation had a competitive flexible working offering. “Better flexible working options” was the most popular selected workplace initiative that could be implemented to improve respondents’ wellbeing.
Policies or programmes designed to support employee wellbeing can be perceived differently by different age groups. 73% agreed that organisational policies or programmes are in place to support employee wellbeing. Compared with the 41-50 age group, the 21-30 year old group of respondents were 10% less likely to agree with this statement. 48% agree that wellbeing initiatives are more than a ‘tick-box’ exercise at their work. Compared with the 41-50 age group, the 21-30 year olds were 11% less likely to agree with this statement.
survey participants
• •
Listening to the employee voice and providing opportunities for feedback, followed by being proactive with the results, is essential. 64% of respondents believed that if they knew it was going to make a difference, they would like the opportunity to give anonymous feedback to their employer. Less than a third (31%) agreed that their workplace is proactive with wellbeing support.
There are gender differences to be taken into account when setting up rewards and benefit schemes.
• •
67% of respondents agreed that they were provided with good training and development opportunities, with 11% more males than females agreeing to this statement. 55% of respondents agreed they were paid fairly for the work they did, with 11% more males than females agreeing to this statement.
Beyond the Paycheck: Insights on Employee Reward and Benefits
• •
• •
• •
With economic uncertainty and cost-of-living increases, financial health can have an impact on the wellbeing of employees. 40% of respondents found that thinking about their finances made them feel anxious and stressed. Compared with the 41-50 age group, the 21-30 year old group of respondents were 9% more likely to agree with this statement. 62% of respondents agreed that they earn enough money to afford their bills, pay rent, and buy essentials. Two thirds (66%) of 41-50 year old workers agreed with this statement versus less than half (46%) of 21-30 year old workers.
Early and ongoing education around pensions may be a good way to improve financial health in the long term for employees, especially by focusing on engagement in their workplace scheme or links to the relevance these savings hold.
• •
•
The popularity of responsible investment options is on the rise which should be a key consideration for pension solutions going forward. 58% of respondents either agreed or strongly agreed that it was important to have a responsible investment option for their pension with only 8% disagreeing. 42% agreed that they would accept a riskier investment if they knew it had the potential to do good for the world.
Organisations could find different and interesting ways to communicate and promote the Employee Assistance Programme (EAP) as a positive benefit. 60% of respondents were unsure of whether their employers offered an Employee Assistance Programme.
74% of respondents answered Yes to having a pension, with 23% saying No and 3% being unsure. Less than half (43%) agreed that they know how much income they will need in retirement to retire comfortably, with 22% neutral.
Pensions are crucial for retirement readiness, but many would benefit from advice about their retirement planning and being better informed on realistic targets. 34% disagreed that they know how much to save each month to meet their retirement income target, with a further 24% being neutral. 42% of respondents answered ‘neutral’ to the statement “I feel my company pension plan is sufficient for me to meet my retirement goals.”
When asked to put a list of benefits in order of what is most important to them, Private Health Insurance / Private Medical Insurance (PMI) came out on top most often, with Training and Development second, and Pension third.
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Mega trends
A glimpse into the future: Alexforbes members and their world in 2043 Artificial intelligence Evolution of the working world Climate change Accelerated digitisation and technology-driven change Rise in social and environmental consciousness
The members of 2043
Contributing
Withdrawing
Alpha 18–26 years old
Z 27-41 years old
Y (Milennials) 42-56 years old
X 57-71 years old
Baby boomer 72-90 years old
• Hyperconnected
• Tech-innate
• Transparent,
• Work to live • Crave
• Live to work • Self worth = work
• Do well with
• Scepticism • Focused on results • Think globally • Adapt to change • Eager to learn • Thrive on flexibility • Education is seen
• Loyal to employer • Competitive • Goal-centric • Process orientated • Focused • Disciplined • Enjoy working in
- Grow up in a largely digital world
Shifting generational values
10
• Information is
easily accessible
• Peer interactions
are largely digital
• Virtual assistants are commonly used
I is relied upon •A for basic research
• Personalisation is expected
• Independence is valued
• Visual media preference
• Diversity embraced • Co-creation welcomed
Credit: Alexforbes Impact Centre of Excellence
(technology is a familiar and ubiquitous part of everyday life)
• Accepting others • Realists • Individualistic • Competitive • Transparent • Entrepreneurail and inventive spirit
shares a lot about themselves detailed instructions and guidance
• Desire to make an impact
• Commerce and conscience together
• Value diversity • Love technology • Education is an expensive necessity
• Traditional work
environments are not a preference
• Find solutions
using technology
independence
as a necessary means to succeed
ethic
teams and proving themselves to the team
• Need to know that they are valued
Beyond the Paycheck: Insights on Employee Reward and Benefits
Leave and flexible working Before 2020, flexible working was still considered a competitive advantage, however in recent times, not offering flexibility can result in a loss of talent and engagement. Whilst it still feels like a benefit that businesses are trying to get comfortable with, there is no denying the positive impact it has on wellbeing. Meta-analytic reviews conclude that the positive outcomes of flexible work arrangements can include reduced work-family conflict, better psychological health, increased role satisfaction,
Turning to our research, some the key takeaways on flexible working include:
as well as better physical health, reduced absenteeism, and fewer physical symptoms4. It is difficult to ignore the disadvantages though, such as the blurring of home and work boundaries, social isolation, communication, procrastination, as well as the strain it puts on managers to adjust to new ways of working.
62%
of respondents agreed that the flexible working scheme offered [by their organisation] significantly improves their work-life balance
27%
Over a quarter (27%) of people disagreed that their organisation had a competitive flexible working offering
43%
Just under half of respondents (43%) could benefit from more clear and consistent communication about what flexibility is offered
“Better flexible working options” was the most popular selected workplace initiative that could be implemented to improve respondents’ wellbeing
4 Nicole V. Shifrin & Jesse S. Michel (2021): Flexible work arrangements and employee health: A meta-analytic review, Work & Stress, DOI: 10.1080/02678373.2021.1936287
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Beyond the Paycheck: Insights on Employee Reward and Benefits
We also wanted to explore the underlying reasons people like flexible working, compared to why they might like being in the office. Out of 549 Jersey respondents (where up to two answers could be selected per person), the top two reasons respondents liked working from home were:
227
Jersey respondents
The ability to concentrate better at home (selected 227 times), and
221
The top two reasons why people liked being in the office were:
549
No commute when working from home (selected 221 times).
316
Being around colleagues (selected 316 times)
239
Collaborating face to face (selected 239 times).
Several other questions were asked related to leave, including taking unexpected time off, volunteer leave, parental leave and sabbaticals. Different types of leave can be considered an added employee benefit, as businesses can choose to go beyond the statutory requirement and focus on what will really make a difference to employees and their wellbeing / lifestyle. Some of the highlights related to ‘other types of leave’ included:
85%
of respondents agreed that they would feel supported if they had to take unexpected time off (e.g. for bereavement or sickness)
68%
of respondents agreed that paid volunteer leave would have a positive impact on their wellbeing
There were also opportunities for improvement, where:
25%
agreed that taking a sabbatical (i.e. an extended period of leave to pursue other interests) would be frowned upon by their company
43%
agreed that the parental leave offered [by their organisation] is supportive for new parents with 10% more men agreeing to this statement then women.
Beyond the Paycheck: Insights on Employee Reward and Benefits
Employer Considerations Leave and Flexible Working 1. B etter clarity on job descriptions and in recruitment processes around what flexible working is offered could be an opportunity for better attraction and retention in a market where competition for recruitment and retention is fierce. In addition to our research, the UK government and jobs website ‘Indeed’, revealed that offering flexible working arrangements on recruitment campaigns increased job applications by 30%5. 2. O ffering training to managers on how to communicate and manage flexible working could help an organisation become more competitive. Explore the art of the possible with those who have to manage a flexible workforce and provide them with support and training so they feel empowered to offer it and better communicate it. Managing based on outputs rather than visibility is one of the major shifts to be made. 3. P romoting a supportive parental leave policy and communicating it regularly may provide massive appeal for workers who have a family or are thinking about starting one. Parents account for a huge portion of our workforce, and research shows a supportive policy results in parents being more loyal to their organisation in the future, and more productive6. 4. The positive impact of offering sabbaticals needs to be realised, and organisations should start embracing the offering with open arms. With burnout on the rise7 and organisations struggling to find effective interventions, sabbaticals are relatively easy-to-implement and can prevent loss of talent. If sabbaticals are facilitated before employees are pushed to the brink, most will return with renewed energy and greater clarity about how they want to contribute. 5. Redesigning workplaces to provide quiet spaces to focus, alongside open spaces to collaborate could address the key reasons people benefit from remote work as well as entice them to spend more time in the office. With a lot of businesses retracting their flexible working offering8, the wellbeing benefits that have been realised are now being lost. Rather than mandate everyone back into the office, a better approach might be to look at ways to incentivise people back whilst still ensuring a choice.
5 https://www.gov.uk/government/news/government-says-in-the-interest-of-employers-and-employees-to-make-offer-of-flexible-working-standard 6 https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/a-fresh-look-at-paternity-leave-why-the-benefits-extend-beyond-the-personal 7 https://www.apa.org/monitor/2022/01/special-burnout-stress 8 https://www.bbc.com/worklife/article/20230206-the-companies-backtracking-on-flexible-work#:~:text=While%20CEOs%20cite%20the%20need,many%20cases%2C%20improved%20professional%20performance.
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Wellbeing resources and development The last decade has been characterised by the relentless effort from companies to support employee wellbeing in many other ways than just flexibility and supportive leave, yet research suggests over a quarter of employers still find it difficult to demonstrate the return on investment9. In addition to this, many employees are still struggling with low levels of wellbeing, and in some cases are reporting even lower health levels than before10. So why is workplace wellbeing still not seeing the returns promised? We wanted to explore employee perceptions of efforts to promote and sustain wellbeing in their workplace to see if we can understand it better.
Some of the key takeaways from our findings include:
73%
agreed that organisational policies or programmes are in place to support employee wellbeing. Compared with the 41-50 age group, the 21-30 year old group of respondents were 10% less likely to agree with this statement.
48%
Less than half (48%) agreed with the idea that wellbeing initiatives are more than a ‘tick-box’ exercise at their work 41-50 year olds agreed with this statement more than the 21-30 year old age group (11% difference)
31%
Less than a third (31%) believed their workplace is proactive with wellbeing support
64%
of respondents believed that if they knew it was going to make a difference, they would like the opportunity to give anonymous feedback to their employer.
9 https://employeebenefits.co.uk/27-employers-unable-wellbeing-roi-case/ 10 https://www2.deloitte.com/us/en/insights/topics/talent/workplace-well-being-research.html
Beyond the Paycheck: Insights on Employee Reward and Benefits
Our research highlights that it is important to stay aligned to employee expectations and recognise that younger people may have different expectations on their employer than older generations realise. The sooner we start getting data on these expectations and feedback from our workforce, the easier it will be to attract and retain talent. In addition to this, a recent study found that 73% of Generation Z employees versus 58% of Generation X employees used the mental health benefits provided by their company11. Differences in utilisation rates of benefits alongside differences in expectations may suggest a more flexible approach to benefits would be a strong competitive advantage.
Other findings related to training and development included:
67%
Training and development is also associated with improved wellbeing outcomes12, therefore considering it as a resource that can be offered to employees to improve their wellbeing (and not just as a means to an end for learning related to their role) will resonate with employees. In fact, 54% of our respondents selected training and development as one of the top three most important benefits to them out of a list of other key benefits.
of respondents agreed that they are provided with good training and development opportunities. There was an 11% difference between male and female respondents answering this question, with men being more likely to agree
58%
of employees in Jersey agreed that when they produced good quality work, it did not go unnoticed.
57%
of respondents agreed that they are offered the opportunity and funding to develop a skill they may not otherwise have studied. There was a 10% difference between male and female respondents answering this question, with men being more likely to agree
66%
of respondents believed that training opportunities offered [by their organisation] are easy to access. With 17% fewer people in the 41-50 year old age group agreeing with this statement than the 31-40 year olds.
11 https://www.businesswire.com/news/home/20230306005059/en/More-younger-employees-use-workplace-mental-wellness-benefits-say-they-are-%E2%80%9Cvery-important%E2%80%9D 12 https://www.peoplemanagement.co.uk/article/1821906/l-d-really-boost-wellbeing#:~:text=The%20L%26D%2Dwellbeing%20link&text=More%20than%20a%20third%20(39,longer%20learning%20 and%20development%20programmes.
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Employer Considerations Wellbeing resources and development 1. Gathering regular feedback from the workforce to understand expectations across age groups is a critical way to ensure differing needs can be addressed. Surveys enhance communication between management and staff, giving employees a voice, and help to reduce social distance, but their critical success factor is in the follow-up process13. The employee voice needs to be heard! 2. Focusing on making wellbeing a strategic priority and creating a wellbeing culture will help address the ‘tick-box’ mentality, and is one of the only ways to actually reap the return on investment of wellbeing initiatives. Employers can see a £5.30 return on investment for every £1 spent on employee mental health14, and so there is economic benefit to this approach. Initiatives fall down if employers haven’t first taken the time to understand what employees need and want, when managers aren’t given adequate support or resources, and when little to no investment is given to wellbeing. 3. Recognition can cost nothing and there is opportunity for improvements to have a positive impact on retention and wellbeing. The relationship between recognition and its impact on wellbeing and retention is well documented, with some research suggesting organisations with recognition programmes have 31% lower voluntary turnover than those without15. Reinforcing the importance of providing feedback to recognise effort, as opposed to only providing positive feedback when a job is done well is important, as well as initiatives such as employee reward schemes or peer-to-peer feedback programs being in place. 4. Lifelong learning should be more of a focus. Lifelong learning positively impacts coping with the fast-changing world and leads to a more enriching and fulfilling life16, and organisation’s would benefit from providing pathways for development as well as considering that it needs to be adapted to the individual. Despite moving to a much more digital way or delivering training, everyone learns differently and so a variety of methods should be part of the offering.
13 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8696015/#:~:text=The%20purposes%20of%20employee%20surveys,2001%3B%20Kraut%2C%202006). 14 https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/consultancy/deloitte-uk-mental-health-report-2022.pdf 15 https://www.quantumworkplace.com/future-of-work/importance-of-employee-recognition 16 https://www.sciencedirect.com/science/article/pii/S1877042812019751#:~:text=Greatest%20benefits%20can%20be%20summarized,to%20learn%20throughout%20life%20span.
Ready to put insights into action? Reach out to our Anova expert consultancy team today to support you with turning insights into effective strategies. Let’s work together to move from recommendations to implementation, fostering a vibrant and thriving work environment. It’s time to shape a wellbeing future with Anova - connect to discuss your consultancy needs today.
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Financial health Financial health is a state of stability regarding personal monetary affairs, which includes the amount of savings one has, the amount of money for retirement, and the amount of income spent on fixed expenses. Rising UK inflation in 2023 has compounded financial pressures of the population with some struggling to keep up with payments,or falling into debt17. Individuals unable to fund their financial obligations are found to suffer from poorer mental health18, which impacts their performance at work. For instance, half of those who were behind on energy bill payments reported high levels of anxiety, low life satisfaction and worthlessness compared to a third of those that were not19. Therefore, it is crucial to explore any financial difficulty to provide the appropriate resources to achieve financial health, and hence improved wellbeing.
We questioned Jersey employees on their perception of financial health and reported that:
40%
The Money and Pensions Service (MaPS) defines ‘financial wellbeing’ as feeling secure and in control. In short: financially resilient, confident and empowered20. Financial wellbeing is not just about how well you remunerate your workers. Research from two studies found that “financial capability support was effective across the pay spectrum21” and two employee groups to have the most money worries were those earning between £10k-£14k and those earning more than £100,00022.
of respondents felt anxious and stressed about their finances. There are 9% more workers aged 21-30 years old that feel anxious in comparison to 41-50 years old
53%
of respondents thought it was not difficult to budget, monitor and plan for existing or future personal expenditure. With 5% more male employees agreeing to this statement than female employees
62%
of respondents agreed that they earn enough money to afford their bills, pay rent, and buy essentials. Two thirds (66%) of 41-50 year old workers agree with that statement versus less than half (46%) of 21-30 year old workers
17 https://www.ons.gov.uk/peoplepopulationandcommunity/wellbeing/articles/howarefinancialpressuresaffectingpeopleingreatbritain/2023-02-22 18 Weida EB, Phojanakong P, Patel F, Chilton M. Financial health as a measurable social determinant of health. PLoS ONE. (2020) 15:e0233359. doi: 10.1371/journal.pone.0233359 19 https://www.ons.gov.uk/peoplepopulationandcommunity/wellbeing/articles/howarefinancialpressuresaffectingpeopleingreatbritain/2023-02-22 20 https://www.cipd.org/en/views-and-insights/thought-leadership/insight/talk-money-week-ni-2021/ 21-22 https://newrychamber.com/wp-content/uploads/2021/11/PowerPoint-Margaret-McCloskey-NI-Money-Pensions-Service.pdf
Beyond the Paycheck: Insights on Employee Reward and Benefits
Additional questions were asked related to perception of fair pay and transparency at work. Globally, women in 2022 still earned 17% less than men on average23. Therefore, it is crucial to understand whether the global gender pay gap is perceived throughout companies in Jersey to find ways to remedy this long lasting problem.
We reported that:
35%
of respondents disagreed with “The organisation I work for is transparent on salary and bonus schemes. 7% more females than males disagreed with that statement
55%
of respondents believed they were paid fairly for the work they did 11% more males than females agreed with that statement.
Employer Considerations Financial Health 1. P roviding employees with personal financial management training programmes can help improve wellbeing and resilience. Money is an emotive subject to engage in. Employees competent in financial management are better prepared for economic shock or emergencies24 and therefore have better mental health than their less knowledgeable counterparts. a. Providing access to financial advice from an early age can support knowledge as well as impact the quality of financial decisions made for those employees who engage with a qualified financial advice firm. b. Younger employees may require greater support with managing their finances and anxiety can be reduced while increasing productivity and loyalty. Employers should consider strategies to enable financial wellbeing in the workplace aimed at educating employees on budgeting, prioritising and planning their existing or future personal expenditure. c. This can be tackled practically by partnering with professional financial advisers to educate staff on their personal finances, offering access to financial education platforms or applications for staff to consume relevant real time knowledge in this area, delivering full and holistic total reward statements to staff which give a full reflection of reward, and finally delivering staff discount / reward programs which offer discounts on everyday / high demand items (technology, travel, hospitality).
23 https://www.forbes.com/advisor/business/gender-pay-gap-statistics/ 24 https://www.forbes.com/sites/lizfrazierpeck/2022/01/19/financial-wellness-is-critical-to-your-overall-healthand-financial-literacy-is-the-key/
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Beyond the Paycheck: Insights on Employee Reward and Benefits
2. Ensuring transparency regarding salaries and career growth prospects can address any feelings of unfairness. Employees would feel reassured to have clarity regarding their financial progress. Managers should share the rationale behind salary decisions so that employees know what salary they are entitled to with their position, regardless of gender. 3. Producing and continually refining total benefit / reward statements can both remind employees of the total value of their reward package as well as the wider benefits they have access to in times of need, for example to support mental health when feeling anxious and stressed about their finances. Furthermore, most employees believe there is a role for their employers in supporting their personal financial wellbeing and only one in five (in a UK research report) are satisfied with the efforts their employers have made so far to help them manage their finances25. 4. Debt can be a major driver of stress and financial ill-health and employers can support staff by arranging debt counselling and advice sessions supported by a company loan scheme repayable directly from payroll. Assistance programs like this can have an onward impact on employee productivity and the payroll deductions can be channelled into pension savings once loans are repaid, bolstering employee loyalty and long term financial wellbeing.
Pension Benefit The pension landscape in the Channel Islands is changing with plans for a new retirement saving scheme for those without an occupational pensions scheme taking place, but the concept is not new. Automatic enrollment has been in place in the UK since October 2022. Guernsey Secondary Pensions will officially start from 1 July 2024. The States Assembly in Jersey is set to debate the main details of the proposed Jersey Scheme at the end of 2023, with a consultation following this in 2024. In Jersey, existing guidance around the trivial commutation level (i.e., the option of exchanging your pension for a cash sum) (when reaching 60) of £35,000 is proposed to rise to £50,000 to aid those consolidating pensions. The ability to access ‘small pot pensions’ at any age (currently set at £19,000) is under review, with proposals to 25 https://www.fincap.org.uk/en/articles/how-can-we-improve-financial-wellbeing-in-the-workplace 26 https://www.mercer.com/en-ca/insights/retirement/retirement-readiness-barometer-infographic/
reduce this to £10,000. It is hoped that this will stop people using accumulated pension funds for other purposes when changing employment. While these changes are designed to enable the earlier adoption and safeguarding of pension savings, occupational pensions have a key role to play in making an impact on both the long term financial wellbeing members and society as a whole. Providing retirement funds which proactively incorporate sustainable thinking into their investment management philosophy and supporting businesses with delivering employee retirement readiness outcomes26 are becoming clear components of a future-fit approach.
Beyond the Paycheck: Insights on Employee Reward and Benefits
We asked Jersey employees whether their employer offered a pension scheme:
73%
3%
Jersey employees did not have a workplace pension
of respondents answered Yes
23%
1 in 4
of respondents answered No
of respondents where unsure
There was no differential between male and female employees, but across the age demographics ,3% less answered yes aged 21-30, 2% less aged 31-40 with 8% more answering yes aged 41-50 and 3% more aged 51-60.
Of the 370 Jersey employees who did have a pension, some some of the key takeaways from our findings surrounding the understanding, engagement and confidence in both saving towards and reaching a position of retirement readiness included:
81%
81 of employees agreed they understood how their pension works, where 65% agreed and 16% strongly agreed Compared with the 41-50 age group, the 21-30 year old group of respondents were 10% overall less likely to agree they understood how their pension works.
69%
agreed that their employer’s contribution to their retirement fund is competitive, where 49% agreed and 20% strongly agreed.
21
22
Beyond the Paycheck: Insights on Employee Reward and Benefits
42%
Less than half (42%) know how much income they will need in retirement to retire comfortably with a further 22% being neutral (or unsure).
• This fell to 21% of employees aged 21-30 agreeing they knew how
much income they needed in retirement to retire comfortably, 32% for 31-40 year olds, 47% for 41-50 year olds and 61% for 51-60 year olds.
• 37% of female employees agreed or strongly agreed with this
statement while 49% of male employees did, a 12% differential
42%
felt they knew how much to save each month to meet their retirement income target with a further 24% being neutral (or unsure). This fell to 24% (22% unsure) of employees aged 21-30 agreeing they knew how much to save each month, 35% (27% unsure) for 31-40 year olds, 47% (19% unsure) for 41-50 year olds and 57% (22% unsure) for 51-60 year olds.
57%
felt they cannot afford to save as much as they would like into their pension with 24% being neutral (or unsure). This fell to 49% (30% unsure) of employees aged 31-40 agreeing they can’t save as much as they would like into their pension, rose to 70% (15% unsure) for 41-50 year olds and fell to 54% (24% unsure) for 51-60 year olds.
34%
felt their company pension plan is sufficient for them to meet their retirement goals with 41% being neutral (or unsure).
40% of male employees agreed or strongly agreed (40% neutral or unsure) while 28% of female employees felt their company pension was sufficient (44% neutral or unsure, a 12% differential in positive responses. When looking at age differences, 35% (41% unsure) of employees aged 21-30 agreed their company pension was sufficient, fell to 33% (44% unsure) for 31-40 year olds, and fell again to 31% (44% unsure) for 41-50 year olds while 33% (36% unsure) of 51-60 year olds felt their company pension plan was sufficient. The majority of employees were unsure whether their company pension plan would be sufficient for them to be retirement ready and meet their retirement goals.
Beyond the Paycheck: Insights on Employee Reward and Benefits
Additional questions were asked relating to the importance of environmental, social and governance issues into account when thinking about pensions. Respondents were asked whether these factors were important and if there was a link between an employee’s appetite to take long term risk within a retirement vehicle if savers knew underlying investments had the potential to do good.
We reported that:
58%
58% agreed that it was important to have a responsible investment option for their pension, with a further 34% feeling neutral and only 8% disagreeing. For 21-30 year olds this rose to 59% agreeing, for 31-40 year olds this rose to 60%, for 41-50 year olds this fell to 53% and for 51-60 year old this was 69% (the highest response rate across the age). For those respondents over 61 only 31% agreed and 63% were neutral (or unsure).
42%
42% agreed they would accept a riskier investment if they knew it had the potential to do good for the world with 32% being neutral (unsure). 26% disagreed, saying they would not accept a riskier investment if they knew it had the potential to do good for the world This “disagree” response fell to 21% for 21-30 year olds, 15% for 31-40 year olds but rose to 33% for 41-50 year olds, and 29% 51-60 year olds.
23
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Employer Considerations Pensions Benefit 1. Regular education on how employer pension schemes work can help younger employees in particular who might otherwise find it challenging and expensive to access and persist with financial and investment advice solutions. Younger employees may also have other priorities like saving for a home and, while a pension forms a core anchor of long term savings, education and enabling access to shorter and medium term savings plans may be a consideration for younger employees. 2. Helping employees work with an adviser to know where they stand on their company pension, savings levels and overall financial planning can help them reach their personal goals and position them to be retirement ready. By “retirement ready”27, we mean a shift towards targeting member outcomes by knowing how much is needed to retire comfortably and save regularly to reach their goals. By identifying those that could be falling short and taking action through advice led plans, employee wellbeing can be improved. The benefits of advice-led plans where advice is made available to employees at each significant event in their life journey are as follows: a. More needs met: the probability of employees meeting their needs over a lifetime can increase significantly. b. Increased contributions: Increased contributions lead to increased likelihood of employees staying on track for retirement. c. Better decisions: Having the right information and guidance at the right time helps employees to make better decisions. d. Financial capability: Regular, meaningful engagement improves employees’ ability to manage money. e. Increased preservation: Increased preservation leads to employees having improved prospects of a more comfortable retirement f. Increased annuitisation: Access to advice and the right solutions at retirement leads to employees making better choices 3. Providing sustainable retirement solutions can further engage employees to participate in a pension scheme. Rising interest in ESG and responsible investment considerations are becoming part of the retirement journey. The survey revealed these considerations resonate with the bulk of savers, not just those under 40. A competitive retirement scheme going forward will have to factor more than cost / contribution levels into account as wider societal and sustainability factors now accompany the primary retirement aim of consistent, long term risk adjusted returns. 4. Improved employee financial wellbeing can lead to improved employer financial wellbeing with direct benefits for employers and pension trustees including: better outcomes for members, support in fulfilling fiduciary duties, peace of mind, improved productivity from employees and meaningful impact when aligned to a companies own sustainability ambitions.
27 https://www.mercer.com/en-gb/solutions/pensions/defined-contribution-pension-schemes/retirement-readiness-index/
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26
Beyond the Paycheck: Insights on Employee Reward and Benefits
Access to traditional employee benefits / other benefits Traditional employee benefits included private health insurance, death in service, and pension benefits etc. as detailed in the table below. These are some of the more common extrinsic benefits on offer to employees. They are often the accompanying financially measurable benefits which run alongside salary and bonus which employees use to calculate a total reward package. Knowledge and awareness of these benefits is likely to affect employee perception of the value of importance they hold. When respondents were asked to rank the traditional benefits in order of importance, the following results were obtained:
Priority 1
Priority 2
Priority 3
Priority 4
Priority 5
Priority 6
Priority 7
Priority 8
Training and development
26%
13%
15%
19%
14%
10%
4%
0%
Private health insurance/Private medical insurance
37%
33%
20%
8%
1%
1%
0%
0%
Death in service
2%
5%
18%
20%
23%
17%
16%
0%
Pension
24%
29%
20%
16%
6%
3%
1%
0%
Equity / Shares
9%
7%
8%
11%
24%
22%
18%
0%
Dental insurance
1%
10%
15%
19%
19%
24%
14%
0%
Employee assistance programme
2%
3%
4%
7%
13%
23%
48%
0%
Other
0%
0%
0%
0%
0%
0%
0%
4%
Choice
Beyond the Paycheck: Insights on Employee Reward and Benefits
Private health insurance
The top three benefits selected as priority one were Private Health Insurance / Private Medical Insurance (PMI, 37%), Training and Development (T&D, 26%) and Pension (24%).
37%
24%
Training and development
Pension
26%
Priorities two and three contained similar results with PMI, Pension and T&D consistently making the podium, with Dental Insurance on the fringes for 2nd and 3rd priority. Fourteen respondents selected ‘other’ benefits. Flexible and remote working options were the most commonly cited in the ‘other’ category, with the ability to buy additional days of holiday.
Dental insurance
Flexible and remote working options
Ability to purchase additional days of holiday
27
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Employee Assistance Programmes (EAP) The EAP is intended to help employees at times of high stress, for early intervention when people are coming into difficult times, for critical incident support, or for general managerial support and intervention, amongst other things. For the 117 respondents who confirmed that they knew they had an EAP service, this research sought to understand what topic areas people would feel comfortable using the service for. ‘Mental Health’ was the most popular option (67 people selected it), with ‘Work Problems’ coming in second (58 selections), and ‘Other life events’ and ‘Legal matters’ coming in joint third (52 selections respectively).
Other findings related to the EAP included:
60%
of respondents were unsure of whether their employers offered an Employee Assistance Programme. This was highest at 73% for workers aged 21-30 years, 65% for 31-40 year olds but reduced to 52% for those 41-50 years old and 50% for those between 51-60.
52%
agreed that the EAP service was relevant to them, with 27% feeling neutral 15% more females than males agreed with this statement
Whilst Employee Assistance Programmes are one of the most underutilised benefits (the average usage figure documented at 12% for 2022), figures show that for every £1 spent on an EAP in the UK, employers saw an average return on investment of £10.8528.
If we can further improve usability within our workforces, it could positively impact employee wellbeing and feelings of support, and reduce the likelihood of it being a cost-inducing but ‘hidden’ benefit.
28 https://employeebenefits.co.uk/exclusive-average-eap-usage-reaches-12-for-2022/
Beyond the Paycheck: Insights on Employee Reward and Benefits
Equity / Share Scheme Employee share schemes can be a great way for companies to attract and retain employees by offering a way for employees to buy shares or equity in the company. Creating shared company ownership can therefore align employee interests with those of their shareholders and can result in financial benefit to employees, especially when the company has a profitable year.
Out of the 49 people who agreed they had access to an employee share scheme or equity options:
We also investigated why people might value the employee share scheme where respondents were able to select a number of answers. The top three reasons selected were:
71%
agreed that “Being an employee owner makes me feel more invested in the future of my organisation”
1
It provides me with more financial incentive to stay with the organisation
2
I feel more motivated to achieve so that the company succeeds
3
I feel more aligned to the business strategy
Death in Service Life insurance benefits, often known as ‘Death in Service’ can help replace an employee’s income if they pass away. This means beneficiaries can use the money to help cover essential expenses, such as paying a mortgage. This research wanted to explore whether it is a benefit that provides comfort or reduces stress about the future by providing peace of mind.
70%
of respondents confirmed their employer offered a Death in Service benefit. Of those respondents that did have it, 70% agreed or strongly agreed that the Death in Service benefit offered gives them peace of mind, with a further 26% feeling neutral.
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Health Insurance / Private Medical Insurance
Private Medical Insurance (PMI) or health insurance is not to be confused with permanent health insurance (income protection) and post pandemic this benefit remains an integral foundation to reward outside of salary and bonus. Increasing demand for PMI from employees coupled with rising costs of medical care provision has seen a significant increase in premiums faced by employers and employees who opt to cover their wider family off the back of the cover provided by the firm.
94%
94% of respondents confirmed their employer offered a Health Insurance
• • •
17% of respondents strongly agreed with the statement “I am satisfied with the level of health insurance provided” with 61% agreeing, 12% were neutral 17% of respondents strongly agreed with the statement “Trying to use or make a claim on my work health insurance is not stressful” with 47% agreeing, 27% were neutral 12% of respondents strongly agreed with the statement “I feel confident that my work health insurance will meet my needs in the future” with 58% agreeing, 23% were neutral
Beyond the Paycheck: Insights on Employee Reward and Benefits
Employer Considerations Access to Traditional + Additional Employee Benefits
1. Educating employees on the wellbeing tools contained within their traditional benefits can have a significant impact on employee adoption of assistance programmes (and the EAP benefit) within the workplace. These benefits not only help employees deal with personal problems that might adversely impact their work performance, health and wellbeing but generally include assessment, short-term counselling and referral services for their immediate family. Providing access to counselling services can support staff with their mental health, a key element to wellbeing, especially given the increasingly unmanageable workloads and resulting workplace stress as referenced in the recent PwC Channel Islands’ Workforce Hopes and Fears Survey. Other areas like financial support, legal advice, crisis intervention, bereavement, support with relationship or work challenges, substance abuse and other matters are cited as key to impacting emotional wellbeing and require intervention and support. A comprehensive EAP offering also enables HR professionals to better support employees in times of need or point them to tools for self help.
Core: “Additional benefits are often buried within the Traditional Benefits and Staff need help to unearth and engage with these valuable benefits” - Traditional Benefits
Traditional benefits
Additional benefits
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Beyond the Paycheck: Insights on Employee Reward and Benefits
2. Private Medical Insurance (PMI) is a stand out workplace benefit for employees. Balancing benefit design quality with cost remains a key consideration for employers when presenting this valuable benefit to employees. Regardless of age, access to private health ranks as a core benefit to offer employees. A post pandemic surge in PMI uptake for corporates in response to employees valuing this benefit more and more has led to rising prices compounded by the rising cost of healthcare and limited supply of healthcare professionals and facilities. Choosing a Private Medical Insurance provider that has an easy claims experience (e.g. dedicated claims handlers/ easy online access) and a comprehensive scope of cover is seen as both a tangible and valued benefit by employees. Healthy employees are more productive. Investing in high priority benefits like PMI will have a real impact in attracting and retaining key employees in a competitive Channel Islands employment market.
Core: Employees prioritise core Employee Benefits like Private Medical Insurance (PMI) as these have tangible and frequent impact on their day to day life in and outside of work.
Traditional benefits Private Medical Insurance (PMI)
Additional benefits
3. A well executed employee share scheme enabling shared ownership and employer employee alignment can be a key differentiator in a competitive Jersey labour market. While the concept of shared ownership is not new it remains a benefit that is seldom applied in Jersey firms. The survey compounded the point that employee ownership aligns and incentives staff. This is a powerful tool to attract and retain talent and if used effectively can build loyalty and bolster reward for key employees. Aside from the clear financial alignment (closely linked to enabling financial wellbeing) it motivates performance and creates a greater sense of belonging which can be a key driver of retention
Satellite: Implementing company share ownership schemes through share options as a reward vs. alignment / retention mechanism should be carefully considered by firms as they may have an outsized impact with the right employees or as a differentiator in certain industries and sectors across firms.
Beyond the Paycheck: Insights on Employee Reward and Benefits
4. Death in service benefits supported by income protection can be a crucial foundation upon which EAP benefits can be accessed to unlock wellbeing now while ensuring protection for employees and their families in the future. Employees affected by death in service, income protection or critical illness claims (cancer/stroke which is becoming more commonplace for under 50’s) will have an onward impact on fellow staff reviewing their risk cover, highlighting the value of this benefit in the workplace. The most common death in service multiple received was 4x cover. Blanket wide Death In Service benefits are a manageable cost for employers when compared to less commonly deployed income protection (previously called “Permanent Health Insurance”) benefits and rarely seen critical illness cover benefits.
Satellite: Death in Service benefits are cost effective to implement and provide a blanket of free cover up to a certain limit (which means covered employees will not require underwriting up to a certain limit), not all staff realise the extent of the value of this benefit and access to coverage free of any medical checks.
5. The ability to flex or tailor benefits can attract new and retain existing staff but are difficult to implement for every firm. Firm size and scale is a qualifier and practically exercising a flexible benefit program is becoming increasingly complex as work forces become more diverse. Employees who openly facilitate the connection of staff to financial education and (even better) suitably qualified professional independent financial advisers can enable a positive impact on employee financial wellbeing. This may well be worth considering as an approach to satisfying the unique needs, wants and expectations of each unique employee within smaller organisations.
Satellite: Balancing flexibility of company benefits on offer vs. individual staff benefit demands may be addressed by focussing on a clear financial wellbeing program and providing access to financial advice for employees.
33
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Spotlight on Guernsey
We have repeated the Jersey data to any areas where there was more than a 5% difference to the Jersey
results. If there was not Although we didn’t get enough more than a 5% difference, responses from Guernsey to provide some solid conclusions (shout out to the we only reported the 57 people who did submit responses!), we Guernsey results. did want to share some of the highlights which could suggest areas to focus on for research in the future. If you are a Guernsey business and would like to be involved with research like this in the future, or to receive the full Guernsey data set from this report, please contact
hello@myanova.com
Leave and flexibility “I am offered enough annual leave for me to rest and recharge throughout the year”
79%
Guernsey
“The parental leave offered is supportive for new parents”
37%
agree
“I would feel supported if I had to take unexpected time off (e.g. for bereavement or sickness)”
86%
Guernsey
“The flexible working scheme offered significantly improves my work-life balance”
47%
Guernsey
agree
62%
Jersey
agree
“Paid volunteer leave would have a positive impact on my wellbeing”
agree
43%
Jersey
agree
“Taking a sabbatical (i.e. an extended period of leave to pursue other interests) would be frowned upon by this company”
23%
agree
Guernsey
Guernsey
agree
“I believe this organisation has a competitive flexible working offering”
47%
Guernsey
57%
62%
Guernsey
68%
Agree
agree
Jersey
Agree
Jersey
agree
35
36
Beyond the Paycheck: Insights on Employee Reward and Benefits
Wellbeing & development “Organisational policies or programs are in place to support employee wellbeing.”
67%
Guernsey
agree
73%
Jersey
agree
“When I do a good job it does not go unnoticed.”
45%
“If I knew it was going to make a difference, I would like the opportunity to give anonymous feedback to my employer.”
77%
Guernsey
agree
64%
Jersey
agree
Guernsey
71%
Guernsey
77%
agree
Jersey
agree
Guernsey
agree
Guernsey
agree
57%
Jersey
agree
“Any training opportunities that are offered are easy to access.”
“Workplace social events have a positive impact on my wellbeing.”
65%
58%
“I am offered the opportunity and funding to develop a skill I may not otherwise have studied.”
67%
agree
agree
“I am provided with good training and development opportunities.”
“Wellbeing initiatives are more than a ‘tick-box’ exercise at my work.”
41%
Guernsey
Guernsey
agree
66%
Jersey
agree
Financial health “Earn enough money to afford their bills, pay rent, and buy essentials”
“I am paid fairly for the work I do.”
47%
Guernsey
agree
55%
Jersey
agree
47%
“I do not find it difficult to budget, monitor and plan for existing or future personal expenditure.”
51%
Guernsey
agree
Guernsey
agree
62%
Jersey
agree
“Thinking about my finances does not makes me feel anxious / stressed.”
61%
Guernsey
agree
40%
Jersey
agree
Beyond the Paycheck: Insights on Employee Reward and Benefits
Financial health (continued) “The organisation I work for is transparent on salary and bonus schemes.”
34%
Guernsey
Disagree
Pension “Does your employer offer a pension scheme?”
100%
Guernsey
yes
74%
Jersey
yes
“I can afford to save as much as I would like into my pension”
20%
Guernsey
30%
agree
Guernsey
agree
42%
Jersey
agree
65%
agree
Guernsey
agree
58%
Guernsey
agee
“I know how much income I will need in retirement to retire comfortably”
Jersey
agree
“I would accept a riskier investment if I knew it had the potential to do good for the world”
“My employer’s contribution to my retirement fund is competitive”
71%
Guernsey
“It is important to me to have a responsible investment option for my pension (i.e. takes environmental, social and governance issues into account”
“I know much to save each month to meet my retirement income target”
24%
agree
“I feel my company pension plan is sufficient for me to meet my retirement goals”
“I understood how my pension works.”
79%
Guernsey
Jersey
26%
Guernsey
42%
agree
28%
Guernsey
43%
agree
agree
agree
Jersey
37
38
Beyond the Paycheck: Insights on Employee Reward and Benefits
Access to traditional benefits and additional benefits “The Death in Service benefit offered gives me peace of mind”
“Does your employer have an Employee Assistance Programme (EAP)”
17%
Guernsey
yes
24%
Jersey
yes
61%
“I believe the EAP service is relevant to me” (only 8 respondents from Guernsey)
62%
Guernsey
agree
52%
Jersey
agree
Guernsey
98%
Being an employee owner makes me feel more invested in the future of my organisation” (only 5 respondents from Guernsey)
80%
Guernsey
agree
71%
Jersey
Guernsey
yes
70%
57%
agree
Jersey
yes
Jersey
agree
Guernsey
yes
94%
Jersey
yes
Guernsey
agree
78%
Jersey
agree
“Trying to use or make a claim on my work health insurance is not stressful”
Guernsey
agree
64%
Jersey
agree
“I feel confident that my work health insurance will meet my needs in the future”
“Does your employer offer a Death in Service (DIS) benefit?”
76%
70%
“I am satisfied with the level of health insurance provided”
66%
yes
agree
“Does your employer offer health insurance?”
“Does your employer offer an employee share scheme or equity options?”
10%
Guernsey
64%
Guernsey
agree
70%
Jersey
agree
Beyond the Paycheck: Insights on Employee Reward and Benefits
Final thoughts A huge thank you to all of those organisations and individuals who participated in the research. The insights revealed key insights surrounding the following core areas:
Leave and flexible working Wellbeing resources and development
Financial Health
Pension Benefit Access to traditional employee benefits and additional benefits
This research has only just scratched the surface, and there is much more to the employee benefit, financial health, and wellbeing domains that could be investigated. More responses mean better quality data, so we would like to take this moment to encourage you to participate in research where you can so that we can bring these types of conclusions to you in the future. We hope you have enjoyed and please do connect with us for future projects.
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Beyond the Paycheck: Insights on Employee Reward and Benefits
About the Authors
Jenny Winspear Chief Operating Officer Anova Jenny Winspear is the Chief Operating Officer of Anova and is a registered Occupational Psychologist with the UK Health and Care Professions Council. Co-host of the WorkInRealLife (IRL) podcast, Jenny specialises in workplace wellbeing, culture and employee engagement.
Get in touch: jenny.winspear@myanova.com
Follow: www.linkedin.com/in/jennywinspear/ For more Anova insights and publications, visit: www.myanova.com/knowledge-hub
Tim Townsend Head of Wealth Management and Corporate Consulting Tim Townsend is Head of Wealth Management and Corporate Consulting at Alexforbes Offshore. Tim has worked in financial services for over 19 years, the last 11 of which have been in Jersey. Tim is dual qualified as a Certified Financial Planner® in South Africa and a Chartered Financial Planner in the UK. Tim is a member of the Financial Planning Institute of Southern Africa (FPI), the Personal Finance Society (PFS) and Chartered Institute for Securities and Investment (CISI) in the UK and has specialised in Investment advice in both jurisdictions. In 2021 Tim completed his MSc in International Financial Services before joining Alexander Forbes Offshore in 2022 to head up the Wealth Management and Corporate Consulting teams. Tim is passionate about financial wellbeing and delivering holistic financial planning and advice with impact.
Get in touch:
Lou-Ann Beneton
Lou-Ann Beneton is a third year BSc Psychology student at UCLwith a strong track record in the development of digital strategies to promote wellbeing. Follow: www.linkedin.com/in/lou-annbeneton/
TownsendT@alexforbes.je
Follow: linkedin.com/in/timothytownsendsajsy For more on Alexforbes Offshore, visit: alexforbes.com/je
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Beyond the Paycheck: Insights on Employee Reward and Benefits
Appendix 1 Jersey Data
549
Jersey respondents
454 were in financial services (82.7%) 95 were not (17.3%)
Role
58.1%
319 Employee 27.0%
Gender 148 Manager / Team Lead 12.6%
318
36.1%
Female
Male
23
10
69 Executive / Director 1.8%
198
57.9%
10 Other
4.2%
1.8%
Not set
Other
0.5%
3 Self-employed
Prefer not to say
Age group Employment status
Under 21
10 | 1.8%
21-30
100 | 18.2%
31-40
138 | 25.1%
41-50
134 | 24.4%
51-60
118 | 21.5%
61+
27 | 4.9%
Not Set
22 | 4.0%
0.5%
3 Casual/zero-hours 87.6%
481 Full-time 11.1%
61 Part-time
Beyond the Paycheck: Insights on Employee Reward and Benefits
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
43
44
Beyond the Paycheck: Insights on Employee Reward and Benefits
Beyond the Paycheck: Insights on Employee Reward and Benefits
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
45
46
Beyond the Paycheck: Insights on Employee Reward and Benefits
Do you have any comments about wellbeing in your organisation? (Comments were themed for the below graphic)
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Beyond the Paycheck: Insights on Employee Reward and Benefits
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
47
48
Beyond the Paycheck: Insights on Employee Reward and Benefits
Priority 1
Priority 2
Priority 3
Priority 4
Priority 5
Priority 6
Priority 7
Priority 8
Training and development
26%
13%
15%
19%
14%
10%
4%
0%
Private health insurance/Private medical insurance
37%
33%
20%
8%
1%
1%
0%
0%
Death in service
2%
5%
18%
20%
23%
17%
16%
0%
Pension
24%
29%
20%
16%
6%
3%
1%
0%
Equity / Shares
9%
7%
8%
11%
24%
22%
18%
0%
Dental insurance
1%
10%
15%
19%
19%
24%
14%
0%
Employee assistance programme
2%
3%
4%
7%
13%
23%
48%
0%
Other
0%
0%
0%
0%
0%
0%
0%
4%
Disagree
Neutral
Agree
Choice
Strongly disagree
Strongly agree
Beyond the Paycheck: Insights on Employee Reward and Benefits
Strongly disagree
Does your employer offer a pension scheme?
23% 74% 3%
Yes
Not sure
No
Disagree
Neutral
Agree
Strongly agree
49
50
Beyond the Paycheck: Insights on Employee Reward and Benefits
Additional Benefits Employee Assistance Programme Employee Assistance Programme (EAP)
Does your employer have an Employee Assistance Programme (EAP)?
I believe the EAP service is relevant to me
16%
24%
14%
21%
38% 27%
60%
Yes
117 Answered Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Not sure
No
Beyond the Paycheck: Insights on Employee Reward and Benefits
Employee share scheme Employee Share Scheme Being an employee owner makes me feel more invested in the future of my organisation
Does your employer offer an employee share scheme or equity options? 10%
18%
10%
26%
53%
64%
18%
Yes
49 Answered Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Not sure
No
51
52
Beyond the Paycheck: Insights on Employee Reward and Benefits
Death in service Death in service (DIS) The Death in Service benefit offered gives mepeace of mind
Does your employer offer a Death in Service (DIS) benefit? 7%
18%
23% 26% 52%
70%
Yes
345 Answered Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Not sure
No
Beyond the Paycheck: Insights on Employee Reward and Benefits
Strongly disagree
Does your employer offer health insurance? 5% 1%
94%
Yes
Not sure
No
Disagree
Neutral
Agree
Strongly agree
53
Like the questions in this report? Choose from a variety of evidence-based and psychological survey questions with the Anova platform to help you understand the employee experience like never before. Prosper with Anova’s tools for measuring and enhancing workplace wellbeing to drive productivity, engagement, and retention. It’s time to revolutionise the way we listen to the employee voice.
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Research by 25188-2023-10 • Getty images • Unsplash images [Aziz Acharki, Brooke Cagle]